VAT deduction for company vehicles in Poland – cars, motorcycles, bicycles and electric scooters
In Poland, VAT deductions for company vehicles depend on vehicle type and use, with different rules for cars, motorcycles and bicycles.
Passenger cars: In Poland, mixed business and private use generally allows a 50% VAT deduction; a full 100% deduction requires additional statutory conditions.
Motorcycles: A Polish tax ruling dated 5 May 2026 confirmed a 50% VAT deduction on the purchase and running costs of a motorcycle used for both business and private purposes.
Electric bicycles: Qualifying e-bikes are not automatically subject to the 50% VAT limit under Article 86a of the Polish VAT Act; general deduction rules apply.
Electric scooters: Under Polish VAT rules, deductions follow general principles and depend on the purchase’s connection with VAT-taxable business activities.
Company cars parked at employees’ homes: Polish tax rulings dated 20 March and 10 August 2026 reached different conclusions on entitlement to a full VAT deduction.
Vehicle classification determines VAT treatment
Businesses must establish a vehicle’s legal classification before applying the relevant Polish VAT deduction rules.
Home parking does not automatically prevent full VAT recovery
Business justification, actual vehicle use and effective controls are crucial when assessing a 100% VAT deduction.
Private use requires a separate VAT assessment
For bicycles and electric scooters, exemption from the automatic 50% limit does not guarantee full VAT recovery.
A company invoice alone does not establish deduction rights
Businesses must demonstrate a connection between vehicle expenditure and VAT-taxable activities and meet other statutory requirements.
In Poland, VAT deduction for company vehicles depends on the type of vehicle and how it is used for business purposes. In 2026, passenger cars and motorcycles used for both business and private journeys are generally subject to a 50% VAT deduction limit. A full 100% deduction is possible if additional statutory conditions are met. Conventional bicycles, qualifying electric bicycles and electric scooters are not automatically subject to the 50% restriction under Article 86a of the Polish VAT Act. Instead, the general VAT deduction rules apply. Individual tax rulings issued in May 2026, together with the latest tax authority position on company cars parked at employees’ homes, provide further guidance on how these rules apply in practice.
Purchasing a vehicle for business purposes does not necessarily mean buying a car. Businesses in Poland are increasingly considering motorcycles, electric bicycles and electric scooters for travelling to client meetings, moving between offices and carrying out other business activities. In each case, the correct VAT treatment depends on the vehicle category and how it is used.
Although all these vehicles can be used for business purposes, the VAT deduction rules are not identical. The vehicle’s legal classification, actual use and potential availability for private journeys all affect the amount of input VAT that can be recovered.
In this article:
What VAT deduction rules apply to company vehicles in Poland in 2026?
The general legal basis for deducting input VAT is Article 86(1) of the Polish VAT Act. Taxpayers may deduct VAT to the extent that purchased goods and services are used for VAT-taxable activities.
However, motor vehicles are subject to specific restrictions under Article 86a of the Act. The main differences are summarised below.
| Vehicle type | VAT deduction rules |
|---|---|
| Passenger car | Generally 50% for mixed business and private use; 100% if statutory conditions are met |
| Motorcycle | Generally subject to the same restrictions as passenger cars |
| Conventional bicycle | General VAT deduction rules; no automatic 50% limit |
| Electric bicycle | General rules apply if the vehicle meets the statutory definition of a bicycle |
| Electric scooter | General rules apply; deduction depends on its connection with VAT-taxable business activities |
For electric bicycles and other powered vehicles, technical specifications are also relevant. Not every vehicle marketed as an electric bicycle necessarily meets the definition of a bicycle under Polish road traffic legislation.
Regardless of vehicle type, businesses must also consider restrictions on purchases used for VAT-exempt activities or purposes unrelated to their economic activity.
VAT deduction for company vehicles · Poland · 2026
Vehicle classification determines the VAT deduction rule
Under the Polish VAT Act, vehicle classification determines whether the special deduction restrictions in Article 86a apply or the general deduction rules under Article 86(1) govern the purchase.
Motor vehicles
Subject to Article 86a
Passenger car
Motorcycle
Generally 50% VAT deduction for mixed business and private use. 100% may be available for exclusive business use, generally requiring mileage records, a VAT-26 notification and controls preventing private use. Special cases may have different requirements.
Not motor vehicles
General rules — Article 86(1)
Conventional bicycle
Electric bicycle meeting the legal definition
Typical electric scooter
No automatic 50% limit under Article 86a. Deduction depends on the connection with VAT-taxable activities; private use requires separate assessment, and full VAT recovery is not automatic.
An electric bicycle must meet the statutory definition: pedal-activated auxiliary electric assistance, a maximum continuous rated power of 250 W, and assistance ending once the vehicle exceeds 25 km/h.
Source: Polish VAT Act, Articles 86(1) and 86a; definition of a bicycle under Polish road-traffic legislation.
When can a business deduct 50% or 100% VAT on a company car in Poland?
A business using a passenger car for both business and private purposes can generally deduct 50% of the VAT incurred on its purchase, lease, rental and operating expenses, including fuel, repairs and maintenance. Under this mixed-use arrangement, there is generally no requirement to maintain the vehicle mileage records needed for a full deduction or submit a VAT-26 notification.
A 100% VAT deduction is available, among other circumstances, for cars used exclusively for business purposes. In a typical case, the business must:
- Establish vehicle-use policies that exclude private use.
- Maintain the required vehicle mileage records.
- Submit a VAT-26 notification within the statutory deadline.
- Ensure that actual vehicle use complies with the established policies.
The VAT-26 notification must generally be submitted by the 25th day of the month following the month in which the first vehicle-related expense was incurred, and no later than the date on which the JPK_V7 reporting file for that month is submitted.
Polish legislation also provides for specific cases in which a full deduction is available because of a vehicle’s design or intended purpose. Different documentation requirements may apply in these circumstances.
Does parking a company car at an employee’s home prevent a 100% VAT deduction in Poland?
Parking a company car at an employee’s home does not necessarily rule out a full VAT deduction. The decisive factors include how the vehicle is actually used, the business justification for its parking location and the effectiveness of measures preventing private use. However, the Polish tax authorities have not adopted a consistent position on this issue.
In an individual tax ruling dated 20 March 2026, reference 0114-KDIP4-2.4012.170.2026.1.KS, the Director of the National Tax Information (KIS) refused a full VAT deduction to a company whose employees parked company cars at home before driving to construction sites. Although the company had introduced rules prohibiting private journeys, maintained mileage records and used GPS tracking, the authority concluded that the possibility of personal use had not been eliminated.
A different conclusion was reached in the individual ruling dated 10 August 2026, reference 0114-KDIP4-2.4012.489.2026.2.WH. The Director of KIS confirmed the right to deduct 100% of VAT on leasing and operating expenses for cars used by sales representatives who began business journeys directly from their homes. Key considerations included the business justification for this working arrangement, mileage records, GPS monitoring and a vehicle-use policy prohibiting private use, supported by control procedures and consequences for violations.
Company cars parked at employees’ homes · Poland · 2026
Home parking does not automatically prevent a 100% VAT deduction
In 2026, the Director of the National Tax Information (KIS) reached different conclusions in two Polish tax rulings concerning company cars parked at employees’ homes. The outcome depends on actual vehicle use, the business justification for parking arrangements and the effectiveness of controls preventing private use.
Full deduction refused
Employees parked company cars at home, then drove to construction sites.
Controls in place
Rules prohibiting private journeys
Mileage records maintained
GPS tracking
KIS found that the possibility of private use had not been eliminated — the 100% deduction was refused.
100% deduction confirmed
Sales representatives began business journeys directly from home.
Controls in place
Clear business justification for the arrangement
Mileage records maintained
GPS monitoring
Vehicle-use policy prohibiting private journeys, with controls and consequences for violations
KIS confirmed the right to deduct 100% of VAT on leasing and operating expenses.
The favourable August 2026 ruling may indicate a shift in the tax authorities’ approach, but it does not establish a settled interpretation or an automatic entitlement to deduct 100% of VAT. Each case requires an individual assessment, particularly of the effectiveness of controls over vehicle use.
Source: Individual tax rulings of the Director of the National Tax Information (KIS) — ref. 0114-KDIP4-2.4012.170.2026.1.KS (20 March 2026) and 0114-KDIP4-2.4012.489.2026.2.WH (10 August 2026).
These contrasting rulings demonstrate that a vehicle’s parking location should not be assessed independently of its actual use. The favourable August 2026 ruling may indicate a shift in the tax authorities’ approach, but it does not establish a settled interpretation or an automatic entitlement to deduct 100% of VAT.
Businesses that have previously restricted their VAT deductions because vehicles were parked away from company premises may wish to reassess their arrangements. However, each case requires an individual assessment, particularly of the effectiveness of controls over vehicle use.
The reliability of documentation demonstrating exclusive business use is especially important. Tax authorities may compare mileage records with actual vehicle routes, and discrepancies could result in a full deduction being challenged. We examine tax audits, documentation requirements and associated risks in more detail in our article, VAT deduction for company cars in Poland: when mileage records may no longer protect your business.
Can a business deduct VAT on the purchase and running costs of a motorcycle in Poland?
For Polish VAT purposes, a motorcycle is classified as a motor vehicle and is therefore generally subject to the same VAT deduction restrictions as a passenger car.
This was confirmed in an individual ruling issued by the Director of KIS on 5 May 2026, reference 0114-KDIP4-2.4012.165.2026.5.WH.
The case concerned a company planning to purchase a motorcycle for business journeys, including meetings with contractors and other company-related activities. However, the motorcycle would also be available for private use. The company did not intend to maintain mileage records or submit a VAT-26 notification.
The Director of KIS confirmed that, in the circumstances described, the company could deduct 50% of the VAT incurred on purchasing and operating the motorcycle.
The restriction covers, among other expenses:
- Purchase of the motorcycle.
- Fuel and operating consumables.
- Repairs, servicing and replacement parts.
- Other vehicle-use expenses covered by Article 86a of the Polish VAT Act.
Can a company deduct 100% VAT on a business motorcycle?
Yes. A full VAT deduction may be available if the motorcycle is used exclusively for business purposes and the relevant statutory conditions are met.
In a typical case, this requires excluding private use, maintaining the prescribed vehicle mileage records and submitting a VAT-26 notification. Arrangements for storing the motorcycle and controlling access outside working hours are also relevant.
However, the ruling of 5 May 2026 concerned only the 50% VAT deduction applicable to mixed use. It did not determine whether a full deduction would be available under different circumstances.
When can a business deduct VAT on an electric bicycle in Poland?
Purchasing an electric bicycle may qualify for VAT deduction under the general rules, without an automatic 50% restriction. The essential requirement is that the expenditure is connected with VAT-taxable business activities.
Unlike a motorcycle, an electric bicycle that meets the statutory definition of a bicycle is not classified as a motor vehicle. Consequently, the special deduction mechanism under Article 86a of the Polish VAT Act does not apply.
The definition of a bicycle under Polish road traffic legislation permits an auxiliary electric motor activated by pedalling, subject to specified technical requirements. These include a maximum continuous rated power of 250 W and the termination of electric assistance once the vehicle exceeds 25 km/h.
What does the KIS ruling of 26 May 2026 say about VAT deductions on electric bicycles?
The practical application of these rules is illustrated by the individual ruling issued by the Director of KIS on 26 May 2026, reference 0112-KDIL1-1.4012.181.2026.2.EK.
The case involved a Polish civil law partnership operating a law firm that had purchased an electric cargo bicycle. The bicycle was used primarily for one partner’s journeys between home and the office, as well as business trips to courts, public authorities and clients. It was also used privately, including for shopping and recreational purposes.
The Director of KIS confirmed the right to deduct input VAT to the extent that the purchase was connected with taxable activities. The authority also indicated that an indirect connection between the purchase and the business could be sufficient. However, it expressly stated that the ruling did not address the VAT implications of private bicycle use under Article 8(2) of the Polish VAT Act.
This means that private use requires a separate VAT assessment. The absence of the Article 86a restriction does not, in itself, establish an entitlement to a full deduction.
Can a business deduct 100% VAT on an electric bicycle?
Yes. A full deduction may be available where the purchase is used entirely for VAT-taxable business activities and no other statutory restrictions apply.
If the bicycle is also used privately, the business must determine the appropriate VAT treatment, taking into account the allocation of expenditure to business activities and any potential VAT liability arising from personal use.
Businesses therefore cannot automatically assume either a 50% or a 100% VAT deduction simply because an electric bicycle has been purchased in the company’s name.
Can a business deduct VAT on an electric scooter in Poland?
VAT incurred on purchasing an electric scooter used for taxable business activities can generally be deducted under the standard rules. A typical electric scooter is not classified as a motor vehicle and is therefore not automatically subject to the 50% VAT deduction limit.
The business must demonstrate a connection between the purchase and its economic activity. For example, an electric scooter may be used to travel between company locations, attend client meetings or carry out business tasks involving short journeys.
Where the scooter is used exclusively for VAT-taxable activities, a full deduction may be available, subject to the remaining statutory requirements.
However, where the scooter is also used privately, the appropriate VAT treatment must be assessed individually. As with electric bicycles, the absence of a 50% restriction does not automatically entitle the business to recover all input VAT.
Are mileage records required to deduct VAT on a company electric scooter?
No. The mileage-record requirements under Article 86a for motor vehicles do not apply. Nevertheless, businesses should retain documentation demonstrating the scooter’s business purpose. This may include the purchase invoice, internal usage policies and records identifying who was authorised to use the vehicle and for what purpose.
How should businesses document the use of company vehicles in Poland?
Documentation requirements depend primarily on the vehicle category and the company’s arrangements for using it.
For passenger cars and motorcycles where a business intends to deduct 100% of VAT on the basis of exclusive business use, the requirements of Article 86a must be met. These generally include maintaining mileage records and submitting a VAT-26 notification.
Equivalent requirements do not apply to conventional bicycles or electric scooters. However, businesses must still retain documents supporting their entitlement to deduct VAT.
In particular, businesses should ensure they have:
- Purchase documentation – a valid invoice and clear identification of the vehicle.
- Business justification – an explanation of the business tasks for which the vehicle will be used.
- Vehicle-use policies – identification of authorised users and rules governing any permitted private use.
- Usage controls – measures appropriate to the vehicle category and the company’s working arrangements.
Is an invoice issued to the company sufficient to claim a VAT deduction?
No. An invoice documents the purchase but does not, by itself, establish the right to deduct VAT. The expenditure must also be connected with VAT-taxable activities, and all other applicable statutory requirements must be satisfied. This applies to cars and motorcycles as well as lower-cost transport options such as bicycles and electric scooters.
What should businesses consider before claiming VAT deductions on company vehicles in Poland?
Before purchasing a vehicle, businesses should first establish its legal classification, then determine how it will be used and what documentation will be required.
The individual rulings issued by the Director of KIS in May 2026 confirm that motorcycles used for both business and private purposes and electric bicycles used in business activities are subject to different VAT deduction rules. Meanwhile, the rulings concerning company cars parked at employees’ homes demonstrate that the tax authorities’ position remains inconsistent and that entitlement to a full deduction depends on the specific circumstances of vehicle use.
Incorrectly classifying a vehicle or applying the wrong VAT deduction percentage may result in the need to correct VAT returns.
Businesses planning to purchase vehicles or review their existing VAT treatment can benefit from tax advisory services in Poland provided by getsix®. Reviewing vehicle-use arrangements and supporting documentation can help establish the correct VAT deduction treatment and reduce tax exposure.
Individual tax rulings issued by the Director of the National Tax Information (KIS)
- Individual tax ruling dated 20 March 2026, reference 0114-KDIP4-2.4012.170.2026.1.KS.
- Individual tax ruling dated 5 May 2026, reference 0114-KDIP4-2.4012.165.2026.5.WH.
- Individual tax ruling dated 26 May 2026, reference 0112-KDIL1-1.4012.181.2026.2.EK.
- Individual tax ruling dated 10 August 2026, reference 0114-KDIP4-2.4012.489.2026.2.WH.
This article was written by the getsix® Editorial Teamgetsix® provides accounting, tax advisory, HR and payroll, and business consulting services, supporting companies operating in Poland. The getsix® Editorial Team prepares practical information that makes Polish accounting, tax, and HR and payroll matters easier to understand.
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